Silver Wednesday Sees Buyers Despite Rough Tuesday
NEW YORK (March 6) Silver continues to be very volatile as we have seen buyers come back into the market on Wednesday to pick up the losses from Tuesday.
Silver Markets Technical Analysis
You can see that silver rallied a little bit during the early hours on Wednesday while the $23.50 level continues to be a market memory based location. After all, it had previously been significant resistance, and now it looks like it’s trying to offer support.
The massive breakout on Wednesday, of course, is a good sign for those who are bullish on Silve, and I do think that it is probably only a matter of time before the market continues to see a lot of upward trajectory. But I also recognize that the $24.50 level is probably going to be difficult to break beyond if, and when we do break beyond that, then I think you’ve got a real shot at going to the 26 level.
If we break down below the $23.50 level, then the 200 day EMA followed very quickly by the 50 day EMA comes into the picture to offer support. The absolute bottom of the market is closer to the $22 level, just as the absolute top is the $26 level. I think this is essentially the range we will trade in for most of the year.
Keep in mind, this is a market that is. ordinarily volatile under the best of circumstances. So, you do have to be cautious with your position sizing. I think given enough time, this is a market that you can look at dips as value just waiting to happen and you take advantage of it. That being said, we were a little stretched on Monday, so we may just have to kick the silver market around this area for a while in order to work off some of that excess froth.
Pay attention to interest rates. Pay attention to the U. S. dollar and pay attention to industrial demand as they all have a major influence on what happens with the silver market. Keep in mind that this is a market that is very erratic and dangerous at times so the most important thing you can do is pay attention to your position sizing.
FXEmpire
